HomeMy WebLinkAboutPrelim - CC - 12-12-2013 DRAFT
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PRELIMINARY MINU S
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, DECEMBER 12, 2013
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Harnik convened the meeting at 3:00 p.m.
I1. ROLL CALL
Present:
Mayor Pro Tem Jean M. Benson
Councilman Robert A. Spiegel
Councilman Van G. Tanner
Councilmember Susan Marie Weber
Mayor Jan C. Harnik
Also Present:
John M. Wohlmuth, City Manager
David J. Erwin, City Attorney
Rachelle D. Klassen, City Clerk
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Martin Alvarez, Director of Economic Development
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
J. Luis Espinoza, Assistant Finance Director
Stephen Y. Aryan, Risk Manager
Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department
Grace L. Mendoza, Deputy City Clerk
Upon inquiry by Mayor Harnik, Ms. Klassen confirmed that the agendas for today's
City Council, Successor Agency, and Housing Authority Meetings had all been
posted in accordance with the Ralph M. Brown Act.
III. ORAL COMMUNICATIONS - A(CLOSED SESSION ITEMS)
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
Mr. Erwin sought the City Council's consideration of adding, by four-fifths vote, an
item of Closed Session consideration that had arisen following posting of the
agenda for today's meeting, as follows:
B. Conference with Legal Counsel regarding existing litigation pursuant to
Government Code Section 54956.9(d)(1):
1) City of Palm Desert v. Suresh Shah, et al., Riverside County Superior
Court, Case No. INC 1301195
Upon a motion by Spiegel, second by Weber, and 5-0 vote of the City Council, the
aforementioned Item B(1) was added to today's Closed Session agenda.
With City Council concurrence, Mayor Harnik adjourned the meeting to Closed
Session at 3:02 p.m. She reconvened the meeting at 4:00 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA- Councilman Van G. Tanner
VII. INVOCATION - Mayor Pro Tem Jean M. Benson
VII1. ORAL COMMUNICATIONS - B
MR. LOTHAR VASHOLZ, resident of Pineknoll, Palm Desert, and representing
St. John's Lutheran Church, Washington Street, Palm Desert, came forward today
to announce an important program his church was sponsoring to help families in the
area, "Single & Parenting." Currently, he related that it is estimated around 50%of
all households are single parent, which he felt was a disturbing fact with all the
challenges families face — child care, adjusting when there's a medical problem,
taking care of finances, and all the scheduling required for children of varying ages.
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He said the "Single & Parenting" Program addresses such issues, referring to the
flier he provided to the Council, and the 90-minute sessions begin with a
professional video that features persons who have been or are single parents.
Following the video, he said there was a guided discussion program and smaller
breakout work groups. He added that the Program is in place in over 300 churches
throughout the U. S.,with St. John's Lutheran the only one currently offering it in the
Coachella Valley and hoping that more will also address the issue. He said the
Program is held at their Church, midway between Fred Waring Drive and Hovley
Lane on the west side of Washington Street. He invited anyone interested to call
them at (760) 345-2122 for more information; child care is provided, as is a light
snack, with the only cost to attendees being $15 for a booklet that includes the
current evening's session and five study follow-up sessions during the week. He
added that it's a very complete package; it was tested over the summer and found
to be extremely effective in helping single parents deal with the myriad of issues and
problems they encounter.
MS. CAROL LANG, Rango Road, Cathedral City, CA, stated that she is the
Residential Home-stay Coordinatorfor Green Planet,whose parent company is the
Cambridge Institute of Intemational Education of Massachusetts. She said they
specialize in bringing quality international students to quality private high schools
by providing quality host families to house these students during their stay as they
fulfill their goal of preparing to attend American colleges and universities. Today,
she was bringing this information to the City Council and community of Palm Desert
in hopes that host families would come forward to take advantage of this cultural
opportunity. She noted that she'd had the good fortune of hosting a Chinese
student when her children were young, and it was a very rewarding and wonderful
experience. She said that students will be coming from China to attend Palm Valley
School in Rancho Mirage,arriving mid-Januaryand staying through mid-June 2014.
Each host family, which can be as few as one or as many as make up a family, will
be given a generous monthly stipend. Requirements included that the student be
given a private bedroom and that the family provide both meals and transportation
to/from Palm Valley School. She added that they also offer a referral bonus to
anyone making a referral of a friend orfamily member, providing they are approved
by Green Planet and chosen by one of the incoming students. She said Green
Planet's website is www.gphomestay.com, and she left fliers about the program for
Council and the public who were interested, offering to answer any questions.
MS. ELEANORA MALACHOWSKA, owner of Karen's Cafe, Country Club Drive,
Palm Desert, said she was here in response to a violation notice she received today
for a sign posted on Country Club Drive. She went on to say Karen's Cafe is
located on the interior of a business park,which has no exposure to the tremendous
traffic on Country Club Drive. She said that exposure brings her a lot of customers,
adding that she receives great reviews on Yelp* and other media outlets, and
people are always grateful for the sign being on Country Club because they had
difficulty finding her location otherwise. She asked City Council to reconsider the
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Temporary Sign Program that was previously approved when she came forward to
ask for such a couple of years ago. She was grateful for that approval but didn't
believe the economic situation had changed much since that time. Therefore, she
sought continuation of the program that was previously in place so she could
continue to do a great business that makes both tourists and locals happy.
Mayor Harnik noted that Ms. Malachowska had provided both her address and
telephone number on the speaker card so staff could be in touch with her.
MS. CATHERINE RIPS, resident of Indian Wells and Director of Development for
Angel View, Miracle Hill, Desert Hot Springs, CA, said she was standing in for her
Board President, Dr. Walt Johnson,who had a last-minute conflict. On behalf of the
Board and the clients served, she thanked the City Council for its recent approval
of their 2013-2014 CDBG (Community Development Block Grant) Request. She
said they were extremely grateful for the City's support of Angel View's Day
Program expansion; the growing Program will soon serve 75 adults with
developmental disabilities, most of whom use wheelchairs for ambulation. She
added that clients are accepted from throughout the Coachella Valley, including
residents of Palm Desert. Specifically, she said they'd requested assistance with
funding for a back-up generator, and thanks to Palm Desert's contribution, they
were in the process of going out for bids. She noted that the process is fairly
complicated, and she heartily commended City staff for their assistance with it —
Frankie Riddle and Miriam Miller in the Special Programs Department. She went
on to say that Palm Desert's generous support would allow Angel View to add
another layer of safety to their emergency preparedness efforts;the health and well-
being of their clients is directly impacted by the CDBG funding and was greatly
appreciated. For almost 60 years,Angel View has provided 24-hour residential care
to children and adults with disabilities. They are about to celebrate their 60�n
anniversary in 2014 and wouldn't have been able to accomplish as much as they
have without great community partners, like the City of Palm Desert. She added
that they've also had great success over the past year and half with their newest
program,Angel View Outreach,which assists families struggling to care for children
with disabilities. All services are provided at no cost, and she encouraged anyone
who knew of someone who would benefit to please contact them. She observed
that later on today's agenda was an item to accept comments on new projects for
CDBG funds; she wasn't here to pitch for any of those but wanted to thank the City
for the previous grant and to invite Council to come by and tour the Day Program
expansion any time it's convenient, and to wish them happy holidays.
MR. MICHAEL SMITH, Santa Rosa Way, Palm Desert, came forward today to
address an issue with a SunLine Bus Route. He referred to the set of three maps
he'd provided for each Councilmember. He stated that Route 53 comes from Town
Center Way to Fred Waring Drive, down to San Pablo Avenue, then to
Highway 111; continues on to Cook Street, making a left turn there, and takes Cook
to Gerald Ford, where it makes a u-turn and comes back down Cook Street. He
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
said that route is going to be extended to go over I-10 to Xavier High School, then
come back up Cook Street; he was okay with this change. However,the one he did
want to address is the one of when the bus turns right on San Pablo Avenue, as
they've always done, where there's a bus stop. Then they want to go up one block
and turn left on Catalina Way and pick up folks from Joslyn Center, as they haven't
had any bus service previously, and it's hard for seniors to get to the existing bus
stop. He said now they want to then go all the way down to Portola Avenue, then
up to Highway 111, which he felt was going to create a nightmare for all the people
who've been used to getting on that bus anywhere in that area and going up to
Highway 111. Therefore, he added that it will no longer stop at San Pablo Avenue/
Highway 111; it will no longer stop at the small inlet just past the Elephant Bar, and
all the people used to that service are going to be cut out. And if they want to get
back to EI Paseo or the vicinity,they'll have to go all the way up to Highway 111 and
come back on a Highway 111 bus. Yet he felt there was an easy solution, referring
to the first page of his maps. He suggested coming from Fred Waring, turning onto
San Pablo, and then onto Catalina. He'd personally walked the route, he'd driven
a Yellow Cab and had gone through the bus training, and felt he had enough
personal knowledge to state that this was a "no-brainer" — to turn left on
San Pascual and turn left on Santa Rosa, go back to Santa Rosa and continue up
that way. He said there was absolutely no problem at all for the bus to negotiate
that route—the streets are wide at the two turn points, there is no traffic congestion
problem, and he hoped to get some support for this proposal. He added that he
offered two plans—one that goes down to Fred Waring on San Pascual and comes
back with the lights, with the third page of his illustrations showing the bus coming
back from Cook Street and a suggested route to go back to Joslyn Center. He
hoped someone would have time to look at this suggestion and see that it was a
sensible solution without cutting everyone out that normally travels that way.
Councilman Spiegel offered that he was the Council's liaison to SunLine Transit
Agency and would ensure this information gets to them. He noted that the next
meeting will be held mid-January, and he would be sure to see what the response
is to Mr. Smith's inquiry.
MR. SMITH appreciated the offer, as he felt what he'd described was accurate. He
commented that SunLine has already placed orange signs on the bus stops
indicating the change would be made in January. He went on to refer to the
previous speakerwho introduced the Single& Parenting Program. He said that it's
estimated that only one child in 10 makes it to age 18 in a home with two parents.
Therefore, he was currently building a website to solicit support for a ballot measure
in California as soon as possible, an initiative for residents of the State seeking
repeal of"no-fault"divorce. He didn't think anyone fully understood how damaging
"no-fault" divorce had been to society unless they took the time to read a book by
Dr. Stephen Baskerville of Patrick Henry University entitled, "Taken Into Custody,"
in which Dr. Baskerville completely outlines the damage done to our society overthe
last 40 years due to the imposition of"no-fault" divorce.
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IX. AWARDS, PRESENTATIONS, AND APPOI(dTMENTS
A. PRESENTATION TO RECOGNIZE ELLIS C. ("CLEVE") LANGFORD FOR
HIS SERVICE TO THE CITY OF PALM DESERT AND ITS CITIZENS'
SUSTAINABILITY COMMITTEE.
Mr. Langford was unable to be present for today's meeting. The engraved
crystal clock, thanking him for his time on the Committee, will be forwarded
separately.
B. PRESENTATION TO RECOGNIZE THE PALM DESERT HIGH SCHOOL
WATER POLO TEAM WINNING THE 2013 CALIFORNIA
INTERSCHOLASTIC FEDERATION (CIF) CHAMPIONSHIP.
On behalf of the entire City Council, Mayor Harnik recognized the 2013 Palm
Desert High School Boys' Water Polo Varsity Team, asking each to
introduce themselves before the Council and audience, and extolling their
extremely successful season that culminated in the 2013 CIF Championship.
She also congratulated Head Coach Greg Garczynski and Assistant Coach
Brendan Meaney, along with Palm Desert High School Principal
Robert Hicks and Athletic Director Darol Salazar. She then presented each
team member with a t-shirt from the Palm Desert Aquatic Center as a small
token of the City's pride in their accomplishments this year.
C. PRESENTATION OF PROCLAMATION DECLARING THURSDAY,
DECEMBER 12, 2013, AS "CHARLIE AND LINDA GARBARINI DAY" IN
THE CITY OF PALM DESERT AND RECOGNIZING THEIR SIGNIFICANT
CONTRIBUTIONS TO THE ANNUAL "TOYS FOR TOTS" DRIVE.
On behalf of the entire City Council, Mayor Harnik presented the framed
proclamation to Mr. and Mrs. Garbarini in honor of their tremendous
generosity and willingness to serve their community in many ways through
numerous organizations. In their honor, the Garbarini's were given a
standing ovation by the City Council and audience members.
D. PRESENTATION OF PROCLAMATION CELEBRATING THE 2pT"
ANNIVERSARY OF CAFE DES BEAUX-ARTS IN THE CITY OF PALM
DESERT.
On behalf of the entire City Council, Mayor Harnik presented the framed
proclamation to Cafe Des Beaux-Arts Owner Didier Bloch and congratulated
both his longevity, his tremendous respect and admiration for his staff, and
for his contributions to the City over these years.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
E. PRESENTATION TO THE CITY COUNCIL BY 2013 GOLF CART PARADE
CHAIRMAN MIKE HARDIN.
Mr. Hardin, owner of The Lock Shop, Palm Desert, and Ms. Katie Stice,
Palm Desert Area Chamber of Commerce Vice President of Membership
Services, presented Mayor Harnik and the City Council with an engraved
plaque to recognize the City's support for the Golf Cart Parade, which he
said has been instrumental in its longevity and growth. Attendance is
currently estimated between 15,000 - 17,000 people on the street that day;
it was a tremendous way to start of the City's season and an event that
appeals to all ages, from the very young to the senior set. He went on to say
they appreciate everything the City does for them, noting that this year's goal
was to attract some larger float entries — the City stepped up and built a
tremendous miniature-scale version of the Civic Center float that was
awarded the Mayor's trophy, which he also presented to the City Council at
this time.
Ms. Stice noted the photographs they'd provided, which were included in
today's agenda packet. She highlighted that this year's Grand Marshal was
Barbara Sinatra, and there were a record number of entries at 95, much
bigger and better with 12 golf booths as well, and a fantastic marketing
campaign. She referred to a miniature Lamar billboard that she brought with
her that had been displayed in two locations in the Coachella Valley, along
with a marketing packet, including poster and more. She went on to say that
their organization gets all the kudos from residents and visitors afterward in
appreciation for all of the work, and she read several that were very
complimentary to the event and to the City. She said 2014 would mark the
Golf Cart Parade's 50th year— making it the longest-running parade in the
Coachella Valley.
F. REORGANIZATION OF THE CITY COUNCIL
1) SELECTION OF MAYOR AND MAYOR PRO-TEMPORE
Mayor Harnik stated iYs been the tradition in Palm Desert to rotate the
Mayor annually, and then the Mayor Pro Tem steps in as the next
Mayor, which is Jean M. Benson.
Mayor Pro Tem Benson thanked Mayor Harnik for doing a fantastic
job this past year as Mayor, stating it was a pleasure to serve under
her as Mayor Pro Tem. She said last year when the City reorganized,
it had a new dimension on the Council where two new
Councilmembers were elected, which threw her back in the rotation
as Mayor Pro Tem; having served as Mayor for six terms, she thought
she would never have to do it again. She said the City has always
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been a leader, it has participated in many events that other cities
didn't, and Palm Desert deserved a Mayor that can continue in that
tradition. Due to the fact she broke her hip a couple of years ago, she
is unable to go to a lot of places where the Mayor is expected to be
seen to carry on in the Palm Desert tradition; therefore, it was her
pleasure to nominate the next Mayor.
Mayor Pro Tem Benson nominated Van G. Tanner for Mayor of the City of Palm
Desertforthe coming year. Nomination was seconded by Councilman Spiegel and carried
by a 4-0-1 vote, with Tanner ABSTAINING.
Councilman Spiegel nominated Susan Marie Weber for Mayor Pro Tem of the City
of Palm Desert for the coming year. Nomination was seconded by Tanner and carried by
a 5-0 vote.
a) Comments by Outgoing Mayor and Mayor Pro-Tempore.
Councilmember Harnik stated it was a privilege to work with the entire
Palm Desert team, because staff's commitment and pride in their
work was evidenced in the results of everything seen around the City.
She thanked Councilmembers Benson and Spiegel fortheirguidance
and mentorship this past year, and Councilmembers Tanner and
Weber for their support and commitment to the City. She said it had
been an amazing and productive year with everyone quickly creating
wonderful ways to address and deal with the loss of Redevelopment.
Redevelopment. Citywide,there have been significant improvements
in infrastructure, Westfield Mall has a whole new look with new
retailers and restaurants; EI Paseo is refreshed from one end to the
other, noting the holiday lights in the medians are gorgeous; retail
stores, restaurants, and events are invigorated, and Fashion Week EI
Paseo was a perFect example; commencement of the first freshman
class at Cal State University in Palm Desert; and the City began its
Strategic Planning process, looking at where the City will be in the
next 20 years. In conclusion, she thanked everyone for their support
and involvement with this incredible year.
Councilmember Benson concurred with Councilmember Harnik in
thanking City Staff, stating Palm Desert had the best staff of any City
in the Coachella Valley. She said she appreciated working with them
for the past 30+ years, and they deserved a lot of the credit for the
City's success, because Palm Desert staff worked together. She
reiterated it was a pleasure to serve the City and hoped to do her best
for the coming year, and the one project she would tike to see finished
by the end of 2014, was the Carlos Ortega Villas.
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b) Comments by Newly Selected Mayor and Mayor Pro-Tempore.
Mayor Tanner stated that in December 2012 he came onto the City
Council from the Planning Commission, and this year he's taking over
a larger seat that Jan Harnik is vacating. He said this past year was
an eye-opener, but iYs been a great experience and only hoped to do
as good a job as Jan. He went on to thank and recognize his wife of
40 years Judy Tanner, his son Phillip and wife Amber, who is
expecting a child, and son Robert and wife Jessica, who is also
expecting a child, and their 21-months old baby boy. He also
recognized his sister Cynthia Williamsberg(Sp?),and the person who
helped him a great deal with the election process Pam Williams.
Mayor Pro Tem Weber joined her colleagues in thanking Jan Harnik
for stepping in to serve as Mayor without the opportunity of serving as
Mayor Pro Tem,yet she set an exemplary standard. She was pleased
to watch and learn how Jan handled everything and now she will learn
from MayorTanneras well.She thanked everyone forthis opportunity
and was extremely grateful to be on the Council. She said she's been
in Palm Desert since 1980 and has admired the team that has
provided the benefits and opportunities the City had to offer. She also
thanked everyone in attendance for being here this evening.
X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meetings of November 14 and
November 28, 2013.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant
Nos. 107, 108, 113, 114, 118, 121, and 122.
Rec: Approve as presented.
C. CLAIM AGAINST THE CITY�#732� by Erik Diehl, a Minor, in the Amount of
$2,000,000.
Rec: By Minute Motion, reject the Claim and direct the City Clerk to so
notify the Claimant's representative.
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D. COMPLIANCE ANALYSIS AND INVESTMENT REPORT for the Month of
October 2013 (Joint Consideration with the Successor Agency to the
Palm Desert Redevelopment Agency).
Rec: Receive and file.
E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Palm Desert
Shell, 77920 Avenue of the States, Palm Desert.
Rec: Receive and file.
F. CITY COMMITTEE AND COMMISSION MEETING MINUTES.
1. Art In Public Places Commission Meeting of September 18, 2013.
2. Audit, Investment&Finance Committee Meeting of October22,2013.
3. Citizens' Sustainability Committee Meeting of August 28, 2013.
4. Library Promotion Committee Meeting of June 19, 2013.
5. Marketing Committee Meeting of September 17, 2013.
6. Public Safety Commission Meetings of September 11 and October 9,
2013.
Rec: Receive and file.
G. LETTER OF RESIGNATION from Jennie Rayner- Palm Desert Marketing
Committee.
Rec: Receive with very sincere regret.
H. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33030 - EI
Paseo Median Electrical Retrofit Project(Project No. 790-14)(Cove Electric,
Inc., Palm Desert, CA) (Joint Consideration with the Successor Agency
to the Palm Desert Redevelopment Agency).
Rec: By Minute Motion, accept the work as complete and authorize the City
Clerk to file a Notice of Completion for the subject project.
I. REQUEST FOR AUTHORIZATION to Issue a Call for Entries Seeking Artists
for the 2015/2016 EI Paseo Exhibition.
Rec: By Minute Motion, authorize staff to issue a call for entries seeking
artists to exhibit in the 2015/2016 EI Paseo Exhibition.
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J. REQUEST FOR APPROVAL to Renew Lease Agreement with Cintas
Corporation for Uniform Services at the Desert Willow Golf Resort in the
Amount of$41,709.96 (Contract No. C30333, Project No. 845-14).
Rec: By Minute Motion, approve the subject Lease Agreement with Cintas
Corporation, Ontario, California, for Uniform Services at the Desert
Willow Golf Resort in the amount of$41,709.96(includes tax). Funds
forthe lease renewal are available in Golf Course Expenses,Account
No. 520-4195-495-8091.
K. REQUEST FOR ADOPTION of Resolutions - Setting Forth Findings and
Authorizing Destruction of Paper Records from the Department of Building
& Safety that Have Been Digitally Imaged (October 2012, November 2012,
December 2012, and January 2013 Records).
Rec: Waive further reading and adopt Resolution Nos.: 1) 2013 - 65 -
October 2012 Records; 2) 2013 - 66 - November 2012 Records;
3) 2013 - 67 - December 2012 Records; 4) 2013 - 68 - January 2013
Records.
L. CONSIDERATION of a Sponsorship Request by the Palm Springs Cruisin'
Association in Support of Hosting Events Within Palm Desert.
Rec: By Minute Motion: 1)Authorize the sponsorship request of the Palm
Springs Cruisin' Association; 2) authorize payment of $2,400 from
Account No. 110-4416-414-3062 (City Sponsored Events).
M. CONSIDERATION of Surplus of Street Name Sign and Sale of Sign.
Rec: By Minute Motion: 1) Surplus the Deer Grass Street name sign; 2)
authorize the City Managerto sell the sign to Mr.William Anderson for
$10.
Upon a motion by Benson, second by Spiegel, and 5-0 vote of the City Council, the
Consent Calendar was approved as presented.
XI. CONSENT ITEMS HELD OVER
None
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Xil. RESOLUTIONS
A. RESOLUTION NO. 2013 - 69 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, DESIGNATING THE
DIRECTOR OF COMMUNITY DEVELOPMENT TO SUBMIT LOCAL
GROWTH FORECASTS TO THE SOUTHERN CALIFORNIA
ASSOCIATION OF GOVERNMENTS.
Councilmember Harnik moved to waive further reading and adopt Resolution
No. 2013-69. Motion was seconded by Weber and carried by a 5-0 vote.
B. RESOLUTION NO. 2013 - 70 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA,APPROVING THE FINAL
SUBDIVISION MAP OF TRACT NO. 36554-1 AND THE RELATED
IMPROVEMENT AGREEMENT (Mario Gonzalez, GHA Communities,
Applicant).
Mayor Tanner recuse himself from this item and left the Council Chamber.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2013-70. Motion was seconded by Benson and carried by a 4-0 vote, with Tanner
ABSENT.
C. RESOLUTION NO. 2013 - 71 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, RECONSTITUTING THE
ADVISORY BODY FORMERLY KNOWN AS THE UNIVERSITY PLANNING
COMMITTEE, PER THE FORMER PALM DESERT REDEVELOPMENT
AGENCY DISPOSITION AND DEVELOPMENT AGREEMENT WITH
MEMBERS OF THE REGENTS OF THE UNIVERSITY OF
CALIFORNIA-RIVERSIDE - PALM DESERT (UCR) AND CALIFORNIA
STATE UNIVERSITY, SAN BERNARDINO - PALM DESERT (CSU) AND
RENAMING IT THE UNIVERSITY PLANNING AND DEVELOPMENT
COMMITTEE TO CONTINUE TO SUPPORT RELEVANT AND
THOUGHTFUL DEVELOPMENT FOR THE ENTIRETY OF THE CSU/UCR
ACREAGE IN THE CITY OF PALM DESERT.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2013-71. Motion was seconded by Weber.
Mr. Alvarez stated staff is trying to recreate and reestablish the Committee
in a different format consisting of three representatives from each of the
entities, the City, UCR, and Cal State. One member at large will be at the
discretion of the City Council to appoint.
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Mr. Wohimuth stated the former University Planning Committee was a
different format, and in working with UCR and Cal State, a more functional
format was developed to include three representatives from each of the
entities. The Resolution identifies finro Councilmembers as members of the
University Planning and Development Committee (UPDC), and since this
item is agendized, he suggested discussing which members would like to be
on the Committee. The former University Planning Committee decided and
voted for Dr. Bill Kroonen being the third member, but it never went to
Council. He spoke with Dr. Kroonen about the format and its quarterly
meetings, and he agreed to stay on.
Councilman Spiegel expressed his interest in serving on the Committee and
approved to having Dr. Kroonen on the Committee.
Councilmember Harnik agreed the Council should have input on what
happens over at the campus, and she too expressed interest in serving on
the Committee.
Councilman Spiegel amended his motion to: 1) Waive further reading and adopt
Resolution No. 2013-71; 2) by Minute Motion, appoint Councilmembers Harnik and
Spiegel, and Community Member Dr. William R. Kroonen to the reestablished University
Planning and Development Committee (UPDC). Motion was seconded by Harnik and
carried by a 5-0 vote.
XIII. ORDINANCES
A. For Introduction:
None
B. For Adoption:
None
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XIV. NEW BUSINESS
A. REQUEST FOR APPROVAL FOR RYAN CAMPBELL TO CREATE A
PROPOSAL FOR AND PAINT A DESIGN ON THE SET OF TWO TRAFFIC
SIGNAL CABINETS ON FRED WARING DRIVE AND PHYLLIS JACKSON
LANE (CONTRACT NO. C32670C).
Management Analyst Deborah L. Schwartz noted this was a different
process than what was done with the other traffic signal cabinets. In this
process, the artist is required to work with students from one of Palm Desert
schools, which will most likely be Palm Desert High School. Therefore,
instead of staff coming to the Council with a proposal at this point, there is
a second step where the artist will come back with a proposal.
Councilmember Benson asked if the artwork in the photographs provided in
Council's packet typical of the work that will be on the cabinets.
Ms. Schwartz replied the samples where characteristic of the artist's work,
but he will work with the students to develop something specific for the
location. She said the City Council will have two or three designs to review.
Further responding, she confirmed nothing will get painted on the traffic
signal cabinets until the Council approves the design. She noted the artist
was present this evening and available to answer questions.
Councilman Spiegel moved to, by Minute Motion, concurwith the recommendation
of the Art in Public Places Commission and approve Ryan Campbell to create a proposal
and paint a design on the set of two traffic signal cabinets on Fred Waring Drive and Phyllis
Jackson Lane. Motion was seconded by Weber and carried by a 5-0 vote.
B. REQUEST FOR APPROVAL OF THE CITY'S PARTICIPATION IN THE
2014 DESERT SCULPTURE SYMPOSIUM, AUTHORIZE EXPENDITURE
IN THE AMOUNT OF$25,000 FROM THE ART IN PUBLIC PLACES FUND
FOR PURCHASE OF A SCULPTURE, APPROPRIATE $5,000 FROM THE
UNOBLIGATED GENERAL FUND RESERVES,AND GRANT PERMISSION
TO UTILIZE CITY PROPERTY FOR THE DESERT SCULPTURE
SYMPOSIUM.
Management Analyst Deborah L. Schwartz stated two community members
met with her and then Mayor Harnik to discuss the proposed symposium.
The idea is to bring eight sculptors in from throughout the world, but mostly
from Italy, to sculp, in a visible/out in the open location, in Carrera marble,
which is one of the most precious materials. She noted the Peace Memorial
in the City's parking lot is made of Carrera marble. She said it will be about
a three-week festival where the artist gives presentations about the artwork;
people will be able to interact with the artist directly on site and possibly work
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with the material. Staff is requesting $25,000 from the Art In Public Places
(AIPP) fund to be set aside as a donation, which really acts as a purchase
of artwork. The City will be paired with one of the artists to work on a life size
marble sculpture to remain in the City's collection. She said no funds would
be disperse from the City's account unless approved by the City Council, but
the City would be the recipient of the donations, and then it will cut checks
back for purchases of appropriate items to vendors. Staff is also asking to
potentially use City land; staff suggested the area next to the Chamber of
Commerce building as a potential location for the festival.
Councilman Spiegel inquired about the Art In Public Places 4-2 vote, with
Commissioners Hough and Miller voting no.
Ms. Schwartz said not much information was offered as to why they voted
no.
Mayor Pro Tem Weber stated she attends the AIPP as the City Council's
liaison, and she recalled everyone being enthusiastic about the symposium,
including Commissioner Miller. She said Commissioner Miller had
reservations about the members of the symposium following certain rules,
because they had been vetted. She said this symposium was a wonderful
opportunity for the community, because the public liked to watch Art in
process, as they have been watching all the paintings of the traffic signal
cabinets.
Mayor Pro Tem Weber moved to, by Minute Motion: 1) Approve the City's
participation in the 2014 Desert Sculpture Symposium; 2) authorize expenditure in the
amount of$25,000 from the Art in Public Places Fund for purchase of a sculpture,Account
No. 436-4650-454-4001; 3) appropriate $5,000 from the Unobligated General Fund
Reserves to Account No. 110-4416-414-3062 for incidental costs; 4) grant permission to
utilize City propertyforthe Desert Sculpture Symposium. Motion was seconded by Harnik.
Mayor Tanner asked if there was an opportunity to regain the funds.
Ms. Schwartz explained the Sculpture Symposium will be going out to at
least eight sponsors, so each sponsor will come in with the same donation
amount, basically in return for a sculpture. Therefore, the City will not go
above the amount that's been allotted. In terms of a reimbursement to the
City, it was not in the cards. However, all the pieces need to fall into place
before the money moves fonrvard.
Councilmember Harnik noted this has been an international event that drew
tourists and hopefully it can be turned into a wonderful Palm Desert event.
Mayor Tanner called for the vote, and the motion carried by a 5-0 vote.
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C. REQUEST FOR APPROVAL OF A FUNDING COMMITMENT IN THE
AMOUNT OF $40,000 TO THE COACHELLA VALLEY ECONOMIC
PARTNERSHIP (CVEP) IN SUPPORT OF THE COACHELLA VALLEY
IHUB/ACCELERATOR NETWORK PROJECT.
Economic Development Manager Ruth Ann Moore stated this item was
reviewed at last month's study session with the City Council. She said the
Coachella Valley Economic Partnership(CVEP)along with the University of
Redlands received a $200,000 Federal Planning Grant to support the
development of a Coachella Valley Advanced Manufacturing Innovation
Center or(iHub). Only 26 such awards were granted this year in the United
States with three going to areas in California. In the first phase of the federal
funding, the grant must be matched by an additional$200,000 in local funds
from regional stakeholders. CVEP has approached the County of Riverside,
Coachella Valley Enterprise Zone, and the cities of Coachella, Indio,
La Quinta, and Palm Desert for a partnership in this project. To date, the
Enterprise Zone has agreed to transfer $25,000 for each of the County,
Coachella, and Indio into the project. These were funds originally
contributed by the cities and County for the Enterprise Zone, which is now
being dismantled; therefore, the funds will be redirected into this project. An
additional portion from those cities is being sought to round it up to$40,000.
The City of Indio approved an additional $25,000 for the project, bringing
their participation to $50,000, and the City of La Quinta also approved
participating with $40,000. She said Riverside County will consider an
additional $15,000 next week, and Coachella will consider this funding next
month. The first phase of the funding will create a GIS operation tool to be
used by the investors when attracting businesses to the Valley. The funding
will also be used to develop business plans forthe new Eastern Valley iHub,
an Accelerator Campus, similar to the one in the west valley, and it will also
identify potential locations for these projects. Of the 26 awards throughout
the United States,for Phase I, five or six of the awardees will receive funding
for Phase II in the amount of $25 million each to develop their iHub and
accelerator campuses. She noted Mr. Thomas Flavin from CVEP was
available to answer any questions.
Mayor Pro Tem Weber said she toured CVEP's two facilities and met some
of the future entrepreneurs,which was an exciting thing to do. She imagined
the rest of the Council had already toured the facilities, but it was her first
opportunity to do so, and she was in favor of the request.
Mayor Pro Tem Weber moved to, by Minute Motion: 1) Approve a funding
commitment of$40,000 to the Coachella Valley Economic Partnership (CVEP)in support
of the Coachella Valley I-Hub Accelerator Nefinrork project; 2) appropriate $40,000 from
unobligated general funds to Account No. 110-4430-422-3630 (Economic Development
Dues).
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Responding to question aboutthe cities of Rancho Mirage and Palm Springs
participation, Ms. Moore replied Palm Springs, Desert Hot Springs, and
Cathedral City participated in the first iHub on the westem side of the Valley.
MR. THOMAS FLAVIN, President&CEO of CVEP, added that an invitation
was extended to the City of Rancho Mirage to participate, but they chose not
to at this time and no reason was given.
Councilmember Harnik stated she served on the board of the Executive
Committee for CVEP, and because a lot of focus was on Palm Springs,
Cathedral City, and Desert Hot Springs, this iHub is addressing that issue by
bringing it to the other end of the Valley to accomplish a regional effort.
Councilmember Harnik seconded the motion, and it carried by a 5-0 vote.
D. REQUEST FOR AUTHORIZATION FOR STAFF TO COMMENCE
NEGOTIATIONS WITH BURRTEC FOR THE SOLID WASTE AND
RECYCLE FRANCHISE AGREEMENT EXTENSION OPTION.
Ms. Riddle stated staff is requesting approval to negotiate the Solid Waste
and Recycling Franchise Agreement with Burrtec; the current term expires
on May 31, 2015. The Agreement provides for a one time four-year
extension, which is the time period under discussion. Included with the staff
report is the AB 939 Recycle Fee Nexus Study, which looked at the various
recycling and diversion programs the City currently has in place and
associated costs. The Road Maintenance&Refuse/Recycle Vehicle Impact
Study also looked at the impact that larger vehicles have on City streets with
an emphasis on the impact from recycling and refuse vehicles and their
associated costs. Therefore, in the negotiations, staff will request an option
in the Franchise Agreement that fees associated with those studies be
included and implemented at such time the City deemed it necessary.
Mayor Tanner pointed out there was a representative from Burrtec to answer
any potential questions.
Councilmember Spiegel said Burrtec did a great job, and in the 16 years
he's served on the Council, he's not had one complaint about Burrtec.
Councilman Spiegel moved to, by Minute Motion: 1) Authorize staff to commence
negotiations with Burrtec Waste and Recycling Services, Inc., for the Solid Waste and
Recycle Franchise Agreement extension option; 2) receive and file Recycle Fee Nexus
Study and Road Maintenance & Refuse/Recycle Vehicle Impact Study. Motion was
seconded by Weber and carried by a 5-0 vote.
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E REQUEST FOR REAPPOINTMENT OF THE DIRECTOR OF
FINANCE/CITY TREASURER PAUL S. GIBSON AS THE CITIES OF PALM
DESERT'S AND RANCHO MIRAGE'S REPRESENTATIVE TO THE
IMPERIAL IRRIGATION DISTRICT'S (IID) ENERGY CONSUMERS
ADVISORY COMMITTEE (ECAC} FOR A FOUR-YEAR TERM, JANUARY
2014 - DECEMBER 2017.
Councilman Spiegel moved to, by Minute Motion, reappoint Directorof Finance/City
Treasurer Paul S. Gibson as the Cities of Palm Desert's and Rancho Mirage's
representative to the Imperial Irrigation District's (IID) Energy Consumers Advisory
Committee (ECAC) for a four-year term, January 2014 - December 2017. Motion was
seconded by Harnik and carried by a 5-0 vote.
F CONSIDERATION OF APPROVAL OF $75,000 IN FACADE
ENHANCEMENT PROGRAM (FEP) FUNDING FOR PROJECT LOCATED
AT 73-811 EL PASEO(Justin Baldwin/Presage Real Estate,LLC,Applicant).
Councilmember Harnik stated she was initially going to recuse herself from
this item, but since there will be no discussion, she will remain in the Council
Chamber and abstain on the vote.
Mr. Alvarez stated the Applicant wasn't able to attend today's meeting and
requested a continuation to the January 9 meeting.
Councilman Spiegel moved to, by Minute Motion, continue this item to the meeting
of January 9, 2014. Motion was seconded by Weber and carried by a 4-0-1 vote, with
Harnik ABSTAINING.
G. CONSIDERATION OF A TRANSIENT OCCUPANCY TAX (TOT)
REIMBURSEMENT AGREEMENT WITH EL PASEO HOTEL, LLC.
(CONTRACT NO. C33180 .
Economic Development Manager Ruth Ann Moore stated this item was a
Transient Occupancy Tax or TOT Reimbursement Agreement with the
developers of the proposed EI Paseo Hotel located at the north east corner
of Shadow Mountain Drive and Larkspur Lane, adjacent to The Gardens on
EI Paseo. She said the City has long been desirous of developing a hotel at
this site in order to further increase hotel rooms and visitors to the
surrounding premiere shopping destination on EI Paseo. This hotel will not
only bring additional TOT to the General Fund, but it will add customers for
the businesses and restaurants on the street, thereby increasing sales tax
for the City. In June 2006, the former Palm Desert Redevelopment Agency
acquired the property through the assignment by William DeLeeuw the
former developer who proposed a hotel for the site. The former developer
received entitlements for the site, but due to the recession was unable to
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acquire financing for the project, and after several e�ensions, all
agreements were terminated. With the elimination of Redevelopment and
renewed interest in the site, a Request for Proposal (RFP) was circulated,
and by the deadline in April of 2012, one submittal was received from West
River, Inc., (Robert Leach) and the team known as EI Paseo Hotel, LLC.
With the passage of cleanup legislation known as AB1484, the Successor
Agency delayed in selling property until the Department of Finance (DOF)
approves the Long-range Property Management Plan,which the City hoped
to receive in the beginning of 2014. In the meantime, the developer has
continued to secure financing on the project, of which, one portion of it will
come from the United States Immigration and Citizenship Services EB-5
Investment Program (EB-5). He said the EB-5 program was established by
Congress to allow foreign nationals to earn a green card(permanent resident
visa) for themselves and their immediate family by investing a minimum of
$500,000 in a qualifying business enterprise that will create at least 10 new
jobs. The City's consultant, Keyser Marston &Associates (KMA), estimate
the cost for the Hotel is just under$35 million, of which 25%will be financed
through the EB-5 investors. During construction, the developers estimate
300+ jobs and probably more once the hotel is operating. She said
Riverside County is known as a Targeted Employment Area (TEA) for the
EB-5 program, but by March 2014, portions of the County may no longer be
eligible due to lower employment rates, of which Palm Desert may be one.
All funding secured prior to March 2014 will be allowed to go forward using
EB-5 funds, which is the reason this project is before the City Council now
rather than after the land has been acquired. In the estimated stabilization
net income analysis developed by KMA, the hotel has a funding gap during
its initial years of operations of approximately $3 million, and the developer
is asking for assistance from the City to close that gap. The developer
anticipates taking this Agreement to the banking institution as collateral for
funding the gap. The Agreement as stated is a TOT Reimbursement
Agreement for 50%of the current 9%TOT that is collected by the City,which
will be reimbursed to the developer beginning the first quarter of the hotel's
operations and continues until a reimbursement of $1.8 million is met.
Based on TOT projections, it is anticipated the amount will be reached
befinreen years six and seven. The estimates for hotel nights and average
daily rates for rooms have been conservative, so this Agreement could be
completed sooner should the hotel be more successful. Even with this
Agreement,estimates indicate the Citywill receive an additional$13.6 million
in TOT in the first 20 years of operation. The Agreement does not take
effect until after the hotel is constructed and can be voided by the City should
the developer not complete the project. EI Paseo Hotel Manager Bob Leach
with West River Inc., redesigned the project from its original 2007 design,
while remaining with the envelope of the requirements of the existing
entitlements. She said the project will have to go through Architectural
Review Commission (ARC), but a brief presentation on the concept of the
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hotel will be provided this evening by Mr. Robert Leach. Also available are
representatives from Keyser Marston & Associates, the City's financial
consultant; Architect Gene Fong from Gene Fong Associates; and RHI
(Richfield Hospitality, Inc.) the EI Paseo Hotel Managing Company.
MR. ROBERT A. LEACH, President of West River Inc., stated he had a
historical perspective of the City of Palm Desert, as he has been coming to
the desert since 1972 with his aunt and parents who each owned a
condominium in Palm Desert. He's seen the evolution of the EI Paseo
shopping district over the years from a nice neighborhood retail complex to
an upscale luxury complex to an internationally world-class retail shopping
district with restaurants and galleries. He said the City did a beautiful job
with Palm Desert while still maintaining its art, fashion, and quality of life. He
said they looked at this project years ago, because they were impressed with
the site, in terms of a place that needs a hotel, and it's an infill location. He
said other hotels couldn't be built next to it to dilute the whole process, which
is why they applied for the RFP. He said they had two main goals with this
project, one was to come up with a creative way to finance the project,
because there isn't a lot of enthusiasm about building ground up
development in a seasonal market. Therefore, they turned to the EB-5
program, which allows them to bring individual investors into the project to
provide a large equity chunk to make the project viable. He said most of the
investors will come from China, Korea, or Singapore, etc. , but the program
is also open to South America, Europe, etc. He said EB-5 was an
international program and available to different countries; however, the
program will probably eliminate Palm Desert in March 2014, because the
economy has picked up and Riverside County will no longer qualify as a
Targeted Employment Area. One of the important parts about the program
is that most foreign governments, states, and jurisdictions provide some
economic support for hotel development. He said it was important for
investors to see buy-in support from the City, which is the reason for this
request for support from the City. The second goal is to make sure they
build a very nice hotel. He said his background was in building hotels and
not in building shopping centers, condominiums,or restaurants. Having said
that, the team was concerned with the approved plans, because it was more
of a condominium development than a hotel development. He displayed the
original plans and explained that the point of arrival was very small and
probably in conflict with the driveway turn out for the mall parking garage,
and there was not enough room to stack cars for a successful project of 154
rooms. The massing of the building took up the entire site, which was also
an issue. In terms of a good hotel, people come to the desert to experience
a resort style feel, and in order to accomplish that, you need to have open
space. He said for the past 2'/z years they have worked on redesigning the
hotel to put a luxury hotel on the site and they selected Marriott's Autograph
Collection as the brand forthe property, because he knew the Council wasn't
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interested in building a chain hotel to be sitting there; it was too beautiful a
site. The Marriott Autograph Collection is an independent luxury hotel
collection of properties that is powered by the Marriott Reservation System,
which is probably the most powerful reservation system in the world.
Therefore, they get the benefit of building a custom luxury hotel that is
customized to the community, yet it had the support of the most powerful
hotel company in the world. He said they can be successful from a
hospitality and business standpoint and make money as well. He said they
had a meeting with local neighbors, and the Taubman Group that owns the
mall next door. He said the neighborhood, particularly those in the
condominiums that live next door to the east and the people that live on
Shadow Mountain, have accepted the fact that there will be a hotel at that
site, but they want a nice one that will improve their property value, which is
part of their goal as well. He said they were before the Council to ask for its
support, yet it was not in his DNA to come before government to ask for
money nor was he a fan of that; however, there are circumstances in a
seasonal market with new construction that requires him to get economic
support for this type of project. He said this project was guaranteed to make
money, and the City would invest nothing unless they build and opened the
hotel. He said it will be a four-star luxury hotel with the most powerful
reservation system in the world, stating that come hell or high water, people
will pay taxes, which is the nature of the real estate business. He asked the
Council for its support, reiterating he didn't particularly liked asking
government for money, but in certain cases, in a market that is seasonal
where there is a soft season in the hot months, they will need the economic
support and City buy-in for this type of financing on the project. The second
group available to answer questions is Richfield Hospitality Inc., an
international hotel that will manage the hotel. They chose RHI as the third
party managing the hotel, because they want an independent luxury lifestyle
hotel. He said when people walk into the hotel, they will know it's a one of
a kind hotel in the world and unique to the City of Palm Desert.
MR. GREG MOUNT, Presidentof Richfield Hospitality, Inc., stated theywere
a 40-year old company, owned by a public company, which is traded on the
Hong Kong Exchange called CES. He said CES as a majority owner in CDL
(City Development Limited), which is traded on the Singapore Exchange is
about a seven-billion-dollar market. He said RHI owned about 300
companies and subsidiaries worldwide, including a lot of real estate from
Hong Kong to Singapore, the Grand Hyatt type, owning assets all over the
world. He said they owned the money and hotels to about 14 in the U.S.A.,
and 100 befinreen Asia and Europe, along with a lot of other real estate. He
said Richfield operates about 30 hotels in the United States, and a number
of luxury hotels from The Joule Dallas in Dallas, Texas, which was built in
downtown Dallas to the St. Regis in Deer Valley. He said they recently took
over La Posada Hotel in Santa Fe, Mexico; therefore, they have a number
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of assets that are similar to this project. Of the 30 hotels they owned in the
United States, they own about a third of them. He said they are currently
involved with another public/private project that was approved for a Westin
Hotel in the City of Irving Texas. He said it was still less expensive to buy
existing buildings, which is why there are a few of these projects getting
done. He went on to say they also operate a company called Sceptre,which
provides reservations, revenue management, and website development to
about 4,000 hotels worldwide. They have offices in Denver, which is where
he came from, Houston, Shanghai, and London. From the standpoint of this
project, he believes the deal and the structure lends itself to a luxury hotel
because of the location. There is a huge opportunity because of the drive-in
business from Los Angeles and having a luxury hotel is something that
people looked for, particularly a luxury boutique hotel.
MR. LEACH said the Architect will also provide a brief presentation of the
hotel design, but it's in its conceptual stage. Therefore, he asked the Council
not to hold them to the design, because it still had to go through Architectural
Review Commission for a lengthy process. He noted Angela Landgraf(RHI,
Senior Vice President) lived here locally in the City of Rancho Mirage. He
said there was a lively debate on the color of stucco to use on the building,
and the color represented in the drawings is a holding piece. He said his
side of the team liked the white and off-white stucco, similar to the facades
on EI Paseo; the other half of the team likes the sandstone look. The
renderings are in the sandstone, but it is something that will be discussed in
ARC. Responding to question, he said they planned to break ground at the
end of the high season next spring. He said they are on track with financing
in terms of debt and equity, and they promised the City they wouldn't start
construction during Fashion Week; however, it was important to open in high
season in October or November 2015.
MR. GENE FONG, Architect with Gene Fong Associates, stated the goal for
the hotel was to open up the vista and create as much open space possible.
He displayed the site plan of the hotel and pointed out the attractive and
generous Porte Cochere,which allowed two lanes to wrap around; it also has
short-term and handicap parking. He said vehicles will either self park or
valet park to the basement below. The arrival experience is to create
something attractive and open that visually connects with the area. The pool
area will have extensive landscaping, trellises, and shade structures. He
also displayed a visual of the renderings, noting that it was still work in
progress, and color was something they will continue to work with. He
pointed out the high ceilings and overhang of the Porte Cochere, the desert
character in the building with the natural stone, glazing, and plaster. He
displayed the view from the courtyard into the pool and spa area, noting the
spa will be operated by a third party. He said it will be an open lobby where
the restaurant and bar can all be engaged into one setting. He said it was
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work in progress, but they felt very strong about this project. As a team
member, he was happy to be part of this hotel with Mr. Robert Leach.
Councilman Spiegel said he liked the design and believed it was a great
addition to EI Paseo, because it was something that was needed.
Councilman Spiegel moved to, by Minute Motion: 1) Approve a Transient
Occupancy Tax (TOT) Reimbursement Agreement as to form with EI Paseo Hotel, LLC.,
Palm Desert, California, in the amount not to exceed$1,800,000 forthe operation of a 154-
room boutique hotel located at the northeast corner of Larkspur Lane and Shadow
Mountain Drive and authorize the City Attorney to make non-substantive changes; 2)
authorize the Mayor to execute said Agreement. Motion was seconded by Hamik.
Mayor Pro Tem Weber asked if the project was contingent on the State's
Department of Finance (DOF) decision.
Mr. Wohlmuth explained the City's Property Management Plan has been
submitted to the State Department of Finance, and it was staff's
understanding that it's likely to be approved this month. He said the Property
Management Plan included three categories, Future Development,
Governmental Use, and For Sale Properties. He said this project fell under
Future Development, and the process would allow the City of Palm Desert
to sell this property and pick up the proceeds from the sale of the property
to EI Paseo LLC. The value of the property is then submitted to the County
of Riverside Assessor to distribute funds as part of the property tax
distribution and Redevelopment Fund distribution formulas.
Councilmember Benson said it wasn't creative financing to ask the City of
Palm Desert for money, because it didn't take any brains to do that. She
said the City has been fortunate to have some great hotels, one of them
being the Marriott flagship hotel, without the City financially helping them.
She said to start rebating out of the City's TOT was going down a slippery
slope, because the City lived on TOT and Sales Tax; the City didn't get
property tax.Therefore, Palm Desert has to manage its money very well, and
it has accomplished it over the years without giving it back to anybody. She
said other hotels had faith in the City and went ahead and build and they
have been successful. She understood this developerwould like to have the
City pitch in, but it wasn't because they didn't have the money to do it
themselves.Additionally,the proposed hotel design was not competitive with
the desert, stating it was probably a luxury hotel, but she's seen luxury hotels
around the Valley that have gone belly up as well. She agreed it was a great
location for a hotel, as the City has waited a long time to have one there, and
she would be in favor of one if it fit into the decor of the desert. She
reiterated she was against rebating any of the City's TOT, because it only
meant future hotels will want the same. She said the cities that have rebated
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hotel tax are all in trouble, and Palm Desert was the only city with a healthy
reserve, because it didn't give it away. She was willing to look at other ways
to help build something on the site, but she was not willing to start a process
where it started giving away its money.
Councilmember Harnik said she understood Councilmember Benson's
comment; however, it was now a different age, and the City was sorely
lacking a boutique hotel around EI Paseo. She agreed the Council was
extending the City in this project, but it didn't mean it had to be done every
time or every time this way. She would love to see this project finally
started, stating it will prove to be a tremendous asset to EI Paseo and the
City in general.
Mayor Tanner concurred from the stand point of what it will do to downtown
EI Paseo to get the head count up. He said the City was driven by TOT Tax
and Sales Tax, but Palm Desert won't get the additional heads without a
boutique hotel. He believed the City needed to invest into that future where
in six or seven years down the road, the$1.8 million will be met. He said the
Council is putting its faith in this project so that the City can continue to grow
in having a boutique environment.
Councilman Spiegel commented the owners of Cafe Des Beaux-Arts would
be very happy with this hotel, because it will be right down their street.
Mayor Pro Tem Weber stated Councilmember Benson made a good point
that the proposed design was different from the kind of architecture in Palm
Desert, and she wondered if the architect will work with local architects,
rather than just go through ARC for building review and so forth.
Councilmember Harnik stated the proposed hotel design included
mid-century lines that one would see at the Shadow Cliff and similar to what
is around Palm Desert. She said she loved the openness of the hotel,
stating she didn't believe everything being the same was necessarily the
answer to success. She said these are things that are very subjective, and
she was one that liked the proposed design.
Mayor Tanner stated the question here today was whether Council was
willing to give 50% of the 9% of the City's TOT to this boutique hotel to give
them an opportunity to go through ARC, Planning, and ultimately to the
Council with the final plans. He didn't want to see this project stalled and
hoped it will open in 2015. He understood there are concerns with the
design, but those concerns can be dealt with when it came back to the
Council for final approval.
Mayor Tanner called for the vote, and it carried by a 4-1 vote, with Benson voting NO.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
H. CONSIDERATION OF TITLE SPONSORSHIP REQUEST FROM THE
LIVING DESERT FOR ITS "DESERT BIRDS OF THE OUTBACK"EXHIBIT
FROM JANUARY 4, 2014, THROUGH MAY 2014, IN THE AMOUNT OF
$40,000.
Mr. Wohlmuth noted he prepared the staff report, stating he's been working
with Stacey Johnson, President&CEO of The Living Desert at the staff level
trying to encourage them to propose special events and implement methods
to drive tourism to Palm Desert. Staff has also been working on other
special event ideas like a Jazz Festival, and this event was one Mr. Johnson
brought forward. He said this was a great family type of event that will help
The Living Desert based on the marketing plan they presented that was
reviewed by Donna Gomez. He said the event will advertise Palm Desert
and The Living Desert for families to come out to visit this attraction, which
Mr. Johnson can describe how the Desert Birds of the Outback Exhibit is
interactive. He said staff recommended approval and support of this project.
Councilman Spiegel agreed The Living Desert is one of the City's major
assets, because it brought people to Palm Desert from all parts of the world.
He said he was jealous of the City of Indian Wells always supporting The
Living Desert's Christmas Lights,therefore, he was in favorof supporting this
event with $40,000 to get Palm Desert's name in the paper.
Councilman Spiegel moved to, by Minute Motion: 1) Consider becoming a title
sponsor for The Living Desert's Desert Birds of the Outback exhibit from January 4, 2014,
through May 2014, in the amount of $40,000; 2) if Council approves a title sponsorship,
appropriate$40,000 from the Community Contingency portion of the Unobligated General
Fund Reserves (Account No. 110-4110-410-3880)to the Marketing budget(Account No.
110-4417-414-3222). Motion was seconded by Weber.
Councilmember Harnik stated that in the interest of full disclosure, she said
her husband served on the Board of The Living Desert, and he received no
financial compensation whatsoever.
Mayor Tanner said he was looking forward to having The Birds of the
Outback come to the Coachella Valley, and no explanation of the exhibit was
necessary.
Mayor Tanner called for the vote, and the motion carried by a 5-0 vote.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
I. CONSIDERATION TO PURCHASE THE COLORADO TIMING SYSTEM
FOR THE PALM DESERT AQUATIC CENTER IN AN AMOUNT NOT TO
EXCEED $70,000.
Councilmember Spiegel asked if this timing system will bring about major
competitions.
Senior Management Analyst Ryan Stendell responded it will in time, but first
local swim clubs and water polo teams will be able to use it. He said most
major events are programmed two or three years out, but staff will work its
way into their schedule. Further responding, he confirmed the funds for the
timing system are in the Aquatic Center Impound Fund.
Councilman Spiegel moved to, by Minute Motion: 1)Authorize the purchase of the
Colorado Timing System (CTS) for the Palm Desert Aquatic System in an amount not to
exceed $70,000; 2) appropriate $70,000 from Unobligated Fund 242 monies to Account
No. 242-4549-454-4001 (Aquatic Center, Capital Account). Motion was seconded by
Harnik and carried by a 5-0 vote.
J. INFORMATIONAL REPORT ON THE HIRING OF FG CREATIVE TO
PROVIDE MARKETING SERVICES FOR THE PALM DESERT AQUATIC
CENTER.
Mr. Wohlmuth stated at the Strategic Planning Session, the comment was
made that the City paid Tourism & Marketing Manager ponna Gomez the
salary of one person, but she did the work of three people, which he thought
was true. The concept with this contract is to combine efforts on the Aquatic
Centerwith the YMCA, as seen first with the website and marketing material,
i.e. the logo on the t-shirts provided to the Palm Desert High School Polo
Team this evening. He said staff brought to his attention that combining all
these efforts into one contract, the City would get a better product and save
money. He said Ms. Gomez will explain how this contract will save the City
money.
Mayor Tanner said an explanation wouldn't be necessary. Councilmember
Harnik agreed, stating she read the staff report.
Councilman Spiegel moved to, by Minute Motion, receive and file the informational
report. Motion was seconded by Harnik and it carried by a 5-0 vote.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
XV. CONTINUED BUSINESS
A. REQUEST FOR APPROVAL OF AN OUTDOOR DINING AREA TO
ENCROACH INTO THE PUBLIC RIGHT-OF-WAY ALONG LARKSPUR
LANE, SUBJECT TO THE BUSINESS OWNER PROVIDING CERTAIN
FACADE IMPROVEMENTS, INCLUDING A NEW AWNING, NEW PATIO
RAILING, NEW PATIO FURNITURE, AND CONCRETE PLANTERS WITH
UMBRELLAS FOR CAFE DES BEAUX-ARTS LOCATED AT
73640 EL PASEO, Case No. ODP 13-210(Cafe Des Beaux-Arts, Applicant)
(Continued from the meeting of November 14, 2013).
Mr. Wohlmuth stated that although this item will be continued at the request
of the Applicant, at the last meeting, the Council inquired about the widths
of the side streets, across the street, and other streets on EI Paseo, which
staff is prepared to provide this evening.
Councilman Spiegel said he thought the Council would be going over to the
site.
Mr. Wohlmuth said that can still be done after the season in February or
March.
MR. DIDIER BLOCH, Applicant, said he was called and asked by staff to
prepare the sidewalks to show how much room there was for pedestrians.
Since it was now December, he couldn't start construction and it wasn't
urgent to do so;therefore, he would rather discuss this later. Additionally, he
is having second thoughts, because he's not sure he needs additional
seating. He was informed his request would be accepted if he provided a
new awning and the project was beautified. However, he asked if he chose
not to do the additional seating, because it's rather complicated with the
handicap access, etc., but agreed to do the awning, which would cost about
$20,000, would the City consider helping him with the cost.
Mayor Tanner asked if he was referring to the Facade Enhancement
Program (FEP).
MR. BLOCH said he understood the City didn't like the green awning he
currently had on his restaurant.
Mr. Wohlmuth stated he believed the Applicant was asking if he made an
application for the FEP would the City consider it. He recalled for the Council
there was $700,000 set aside in the Facade Enhancement Program with
20% being used on EI Paseo and 80%on Highway 111. However, there are
no guarantees, because the Applicant would have to submit an application
and go through the ARC process. He said the amount would be based on
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
the policy the Council approved at the last meeting. In answer to
Mayor Tanner's comment, would the Council like to discuss this item tonight
or continue it to March.
MR. BLOCH said continuing to April would be preferable, because it will
allow him the time to prepare the sidewalk for the Council's visit.
Councilmember Benson said the Council asked to visit the site before it
could discuss the request, and now the Applicant wants to wait until next
year; therefore, she didn't want to discuss the item until she made the visit
to the site.
Councilmember Harnik asked the Applicant if he was referring to FEP funds
for the enhancements on EI Paseo or Larkspur Lane.
MR. BLOCH replied his request would be for both streets.
Mayor Tanner stated there were two issues here. First of all, the Applicant
requested the Council to look at his expansion of putting tables and chairs
on EI Paseo and Larkspur Lane, which was one issue. The second issue is
the potential forfunds forthe facade improvements. He asked the Applicant
if he was inquiring about both issues, or was he taking the outdoor dining
with tables and chair off the table.
MR. BLOCH explained business was not what it used to be, and he didn't
know if he needed additional seating, stating that in April the season will be
done and he will have a better picture.
Mr. Wohlmuth suggested continuing the item to March or April, and any
information received befinreen now and April, including sidewalk widths, a
report will be provided to the Council along with what the Applicant
determined and/or when the tables and chairs will be ready for the Council
to observe.
Responding to Councilman's Spiegel question, Mr. Bloch said he preferred
postponing to April.
Councilman Spiegel moved to, by Minute Motion, continue this item to the meeting
of April 10, 2014. Motion was seconded by Weber and carried by a 5-0 vote.
Mayor Tanner pointed out that if the Applicant was considering FEP funds,
the program was on a first come, first served basis, and there was a limited
amount of money.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
XVI. OLD BUSINESS
None
XViI. PUBLIC HEARINGS
A. REQUEST FOR ADOPTION OF RESOLUTION NO. 2013-72,AMENDING
RESOLUTION NO. 2012-37 AS RELATED TO THE PUBLIC WORKS
DEPARTMENT LANDSCAPE SERVICES FEES.
Landscape Manager H. Spencer Knight stated the proposed Resolution is
asking for a change in landscape services fees. This change was brought
about by the economic environment of the past five years that's resulted in
changes in staffing levels in the Landscape Services Division of the Public
Works Department. Change was also brought about by a State-driven
mandate for the City's Water Efficient Landscape Ordinance, which caused
a change in the fee structure. The inspection process has been decreased
in the number of times staff went out to a property to inspect, it's been
reduced from seven to finro visits. Additionally, the plan review process has
been shortened, because the City entered into an agreement with Coachella
Valley Water District(CVWD)who reviews the irrigation portion of the plan.
He said City staff does a cursory inspection, but CVWD did the detailed
number crunching, which reduced staff's plan review and time.
Consequently, staff has been able to reduce the amount of hours involved
in the inspection and plan review process, thereby reducing inspection and
plan review fees.The City added two new categories, because the State now
required inspections of individual family residences on a plan review if they
are a certain size or larger; therefore, the two new categories are two
additional fees. Responding to question, he said Desert Valleys Builders
Association approved the proposed Resolution, stating DVBA liked the fact
that fees would be decreased.
Mayor Tanner declared the public hearing open and invited public testimony in
FAVOR of or in OPPOSITION to this matter. With no testimony offered, he
declared the public hearing closed.
Councilman Spiegel moved to waive further reading and adopt Resolution
No. 2013 - 72, amending Resolution No. 2012-37 as related to the Public Works
Department Landscape Services Fees. Motion was seconded by Harnik and carried by
a 5-0 vote.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
B. REQUEST TO COMMENCE WITH DEVELOPMENT OF THE FISCAL YEAR
2014/2015 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
ONE-YEAR ACTION PLAN AND GRANT APPLICATION PROCESS.
Ms. Riddle stated this request is to open the Community Development Block
Grant Program for the 2014/2015 cycle to receive public input and open the
grant application process.
Mayor Tanner declared the public hearing o�en and invited anyone who wished to
come forward to speak on the matter to do so at this time.
MS. MAGDALENA ANDRASEVITS, Executive Director for Martha's Village
& Kitchen (MV&K), expressed appreciation for the City's assistance in the
past and their intention to request$50,000 from the CDBG 2014/2015 cycle.
She said the funds would support their operating food services program,
providing healthy meals to impoverished and homeless families and
individuals in the Coachella Valley. She said the need was significant with
more than 6,000 homeless in Riverside County and MV&K addresses the
need by providing 225,000 hot meals a year, meals to residents of the
Transitional Housing Program seven days a week/365 days a year, and
offering nutritionally balanced meals to impoverished people,which is usually
the first step in empowering families. She said MV&K invites community
members to express their opinions and provide feedback regarding their
intention to apply for the CDBG funding from the City of Palm Desert.
MS. CHANTEL SCHUERING, F.I.N.D Food Bank, stated her request is for
a public serve project at FIND Food Bank. She noted that Food In Need of
Distribution is the eastern Riverside Countyfood bank, a distribution nefinrork
of 100+ community and faith-based organizations currently serving an
average of more than 85,000 individuals every month; a total of more than
10 million pounds of food every year. She said the numbers are huge, but
the need is getting greater every year. Since last year the need increased
by more than 25%of the amount of food that had to go out the door, and the
number of people served every month continues to grow at a rate of 7.5
percent every 12 months.She said Martha's Village&Kitchen representative
mentioned they provided a hot meal program, and they get some of that food
from the FIND Food Bank, which is their purpose to aggregate donated
resources to fight homeless issues. She said they have been able to utilize
CDBG funding from the City of Palm Desert in the past, and in the next cycle
they will request funds for a public service project to improve the warehouse
space to more easily accept greater quantity of food from large semi-trucks,
which will increase their efficiency. They are fortunate to be in a beautiful
large building, but when it was constructed the grade in the loading docks
was too great to accept 18 wheelers without hitting the building and
consistently causing damage. Therefore,the facility improvements theywant
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
to make are to reduce the grade and instail bumpers to extend the life of the
building and allow them to continue doing what they do. She said one in five
residents are hungry in this Valley. Of the people they serve, 45% are
children, 18% are seniors, 7% are homeless or homebound, and 30% are
low-income families/the working class poor. She said Palm Desert is home
to several community service organizations as part of the Valley's efforts to
find hunger, food and security like St. Margaret's, Family YMCA, Joslyn
Center, Temple Sanai, and a couple of faith-based organizations. She said
all of their partners benefit when FIND benefits, especially when a public
service projects such asfacility improvements are proposed wherein theywill
be able to increase the quantity of food assistance it can accept and
therefore distribute.
MS. CONNIE GOLDS, Desert Best Friend's Closet, stated they have been
fortunate to receive CDBG funding from the City of Palm Desert for the past
two years, and they are looking forward to applying for funds again for the
2014/2015 cycle. She said their mission is to empower low-income desert
residents to obtain employment through education and wardrobe services.
They envision a Coachella Valley where all residents are economically
self-sufficient through employment. She spent some time preparing statistics
about the clients they served, but instead she opted to read a couple of
notes received from some of their clients thanking them for the professional
outfits, the difference the wardrobes made in their lives, and the wonderful
experience at Desert Best Friend's Closet. She said the majority of the
clothing they work with is donated, but there is always a gap in their
donations for things they have to purchase such as: 1) Plus size ladies suits
made from a manufacturing company in Los Angeles, where they can
purchase in black or blue for$28.50; 2) dress shirts in sizes 17'/2 inches or
larger around the neck;they are purchased at big box stores in Palm Desert;
3) men's belts, 4) braziers and shapewear. She said these garments
represented an opportunity for employment and security for families. In
conclusion, she said their mission and goals couldn't be met totally and
effectively without the City's support.
Mayor Tanner thanked all the speakers on behalf of their organizations for
what they did for the entire Coachella Valley.
With no furthertestimonyoffered, MayorTannerleftthe CDBG Application Process
for FY 2014-2015 and public comment period open.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
XVIII. REPORTS AND REMARKS
A. CITY MANAGER
1. City Manager Meetina Summaries for the Period of November 4-27,
2013.
Mr. Wohlmuth noted the Meeting Summaries report contained in the
agenda packets and offered to answer questions. Responding to
question about the conference call meeting having to do with the
Rosewood Hotel, he said that the project is still seeking financing;
there is nothing new to report at this time. Further responding, he
said the meeting held with Kay Hazen regarding a public relations
contract had to do with retaining her services for a Closed Session
matter.
With City Council concurrence, the Meeting Summaries were received and filed.
2. Request for A�pointment of Two City Councilmembers to the
EI Paseo Streetscape Sub-Committee (Ad Hoc Committee).
Mr. Wohlmuth recalled for City Council that it, jointly with the
Successor Agency to the Palm Desert Redevelopment Agency,
entered into a Funding Agreement having to do with the City's
General Fund in order to fund certain improvements on EI Paseo with
reimbursement from the Successor Agency. He said it was for the
electrical system upgrade and forthe benches and trash receptacles
talked about during the budget discussions for FY 2013-2014. With
the Successor Agency Funding Agreement, the City completed the
electrical system upgrade and can now move forward with the
streetscape furnishings. He said Ms. Aylaian has a large collection
of designs for said furnishings, and staff felt it would be appropriate
to enlist the service of two Councilmembers for an ad hoc
subcommittee, along with staff as noted in the memo contained in the
agenda packets. He asked if any Councilmembers wished to
volunteer.
In response, Councilmembers Benson and Harnik volunteered to serve on the
EI Paseo Streetscape Ad Hoc Subcommittee, and Councilmembers concurred with
their appointment.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
3. Coachella Valley Water District (CVWD) and Cook Street Sinkhole
Mr. Wohlmuth reported that he received an update on the sinkhole
that appeared on Cook Street in mid-August due to a sewer pipe
collapse. CVWD has been working aggressively to take care of the
problem, which was found to be much greater than merely the
resulting sinkhole in the City. He said it was a failure of the sewer
pipe system for a certain area, and this afternoon he received a
schedule of work to be completed. He went on to say that CVWD
planned to begin the sewer pipe replacement project on December 17
in order to take some advantage of less Palm Desert High School
traffic during the holiday break, but the work will continue until
approximately March 21. He said there was some good news to
report in that Mr. Greenwood and Public Works staff have worked with
CVWD to re-stripe southbound Cook Street in order to get two lanes
there, in addition to the two northbound lanes while the repairs take
place. He said pipe needed to be replaced between Merle Drive and
Hovley Lane. Although March 21 wouldn't signify completion of the
project, it would represent the end of most of the work on Cook Street,
with other work having to be done beyond that location.
4. Desert Willow Golf Resort Annual Report
Mr. Wohlmuth said that staff will be delivering an informational report
to Council in January a Desert Willow Annual Report on its progress—
golf, restaurant operations, revenues/expenditures, etc. He said the
contracted operator, Kemper Sports Management, is going through
recruitment for a new general manager, with Derek White serving as
Interim General Manager at this time. He went on to say that he and
a couple of other City staff members participated in interviews of finro
qualified candidates for the position, with announcement of a new
permanent General Manager expected around January 1.
B. CITY ATTORNEY
None
C. CITY CLERK
None
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
D. PUBLIC SAFETY
1. Fire Department
None
2. Police Department
None
E. MAYOR AND MEMBERS OF THE CITY COUNCIL
1. City Council Requests for Action:
None
2. City Council Consideration of Travel Requests and Reports:
None
3. City Council Committee Reports:
None
4. City Council Comments:
a) 2014 City Calendar — Mayor Pro Tem Weber said the Historical
Society of Palm Desert wanted her to convey a special and huge
thank you to past Mayor Jan Harnik for the theme of the 2014
calendar. She said they were very excited to be a part of that project,
and past President of the Historical Society Brett Romer wanted to
also especiallythank Management Analyst/Public Information Officer
David Hermann for all of the time he put in while they were pulling the
historic photographs and matching them with the new ones, and he
said it was a true pleasure to work with Mr. Hermann. She added that
everyone at the Historical Society is very pleased with the new
calendar, and it has been very well received in the community.
Councilmember Harnik also thanked Mr. Hermann for his extra
special touch on the project.
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REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 12, 2013
b) Recent City Events — Councilmember Harnik noted that many of
her colleagues got a chance to attend B.A.M. - Behind A Miracle on
EI Paseo on November 22, and it was a wonderful event. She said
EI Paseo looks wonderful for the holidays; The Gardens on EI Paseo
has done a marvelous renovation, as has Westfield Palm Desert.
Further, she said the Wreath Lighting here at City Hall last Friday
evening was also terrific - complete with Santa Claus, and it was a
wonderful turnout. She added that there were lots of children here
having fun decorating cookies, and it was great.
c) Councilmember Harnik said with the time of the year we're now in,
she encouraged folks to check on their neighbors and make sure they
were included in some holiday festivities to brighten their days.
5. Suagested Items for Future City Council Meetin,c�Agendas:
None
XIX. ADJOURNMENT
Upon a motion by Spiegel, second by Weber, and 5-0 vote of the City Council,
Mayor Tanner adjourned the meeting at 6:16 p.m.
VAN G. TANNER, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
35